New research by UK-based information solutions and technologies company Timetric reveals that the Ghanaian insurance industry is one of the fastest-growing insurance industries in Africa, in terms of gross written premium.

The report covers an exhaustive list of parameters, including written premium, incurred loss, loss ratio, commissions and expenses, combined ratio, total assets, total investment income and retentions.

In addition, it provides historical values for the Ghanaian insurance industry for the report’s 2009-2013 review period and forecast figures for the 2013-2018 forecast period. It also offers a detailed analysis of the key segments and categories in the Ghanaian insurance industry, along with forecasts until 2018.

According to Timetric’s report, titled “The Insurance Industry in Ghana, Key Trends and Opportunities to 2018″, in terms of gross written premium, the industry grew at a compound annual growth rate (CAGR) of 30.4 per cent in 2013.

This was supported by growth in the life and non-life insurance segments, with the former having posted a CAGR of 37.1 per cent and the latter having registered a CAGR of 27.7 per cent.

The insurance industry is dominated by the non-life segment, which constituted 48.8 per cent of the total gross written premium in 2013; this was followed by life insurance with a share of 43.6 per cent, and personal accident and health insurance with a share of 7.6 per cent.

The report said the industry grew at a CAGR of 30.4 per cent during the review period (2009-2013), as compared to other African countries, such as Chad with 2.3 per cent, Cote d’Ivoire with 3.9 per cent, Cameroon with 9.4 per cent and Uganda with 18.8 per cent.

The industry, according to the survey, is expected to grow at a forecast-period CAGR of 23.0 per cent in 2018, supported by an increase in oil and gas production, the implementation of compulsory fire insurance for commercial buildings, and an increase in gold production.

“The petroleum sector is expected to be a key growth driver of the Ghanaian economy over the forecast period,” the report said.

According to the report, made available by Fast Market Research, a leading distributor of market research and business information, growth in the marine segment is expected to support the growth of the insurance industry over the forecast period.

One of the major challenges facing the Ghanaian insurance industry, the report said, is the increasing loss and combined ratios across the insurance industry segments in 2013, while high inflation rates in Ghana negatively affected the purchasing power of individuals during the review period.

Timetric lead analyst Cliff Smee said the report make strategic business decisions using in-depth historic and forecast industry data related to the Ghanaian insurance industry and each segment within it.

“The importance of this report is that it makes one understand the demand-side dynamics, key trends and growth opportunities within the Ghanaian insurance industry,” he said.

Comprising 18 life and 23 non-life insurance companies, Ghana allows 60 per cent foreign direct investment (FDI) in the insurance industry, according to the report.